I don’t really see why Peter says they had no choice but to censor it. It might be a problem if PP was a Canadian company, but the US already has lots of b-games with underage-looking characters. Anime as well, Kite originally came out censored but now it’s available uncut with the loli sex scenes and everything, despite the main character being specified as 16 years old in the Japanese artbook (and the flashbacks take place 4 years previous).
If they’re that worried, they should just make up some stuff like she’s really his older sister and she’s got some “little person” genes in her or something…